Legislature Must Look Beyond Next Election And Focus on Investing in Next Generation

Realistic State Budget Must Come Before Massive Tax Cuts

Senate President Pro Tempore Mike Morgan said Monday that any package of tax cuts should be negotiated by Senate and House leaders in conference committee – once a framework for a realistic state budget has been established.

“Speaker Hiett is asking us to sign off on nearly $700 million in tax cuts. That’s more than the total growth revenue in each of the last two years. His program may only be $200 million this year, but it will more than triple in cost in Fiscal Year 2008 and beyond. It would be irresponsible not to look beyond the next fiscal year when considering a program of this magnitude,” Morgan said.

House leaders have scheduled a vote today on a $481 million income tax cut proposal. In addition to the reductions in Senate Bill 2022 by Senator Scott Pruitt, Speaker Todd Hiett has two other tax cut proposals that total nearly $200 million among his legislative priorities.

Morgan said cutting taxes by nearly $700 million will make the state even more reliant on the energy taxes that have fueled our growth in the last two years.

“We cannot forget the lessons of the past. This energy boom, like all others before it, won’t last forever and when the bust comes this time it will be even more severe than it was 25 years ago, Morgan said.
Tax cuts won’t come first in the Senate, he said.

“In the Senate we believe that we should first take care of our obligations by making significant investments in education, healthcare and public safety. We have to look beyond the next election and focus on the next generation,” Morgan said.

“Once our obligations are funded and we’ve taken a serious look at our needs in the future, then we can turn our attention to a package of targeted tax reductions that will benefit the middle class and not just a wealthy few.”